Manappuram Finance units get RBI nod for indirect change in control by Bain Capital

Kolkata: Manappuram Finance on Wednesday said that its subsidiaries -- Asirvad Micro Finance and Manappuram Home Finance -- have received approvals from the Reserve Bank of India for indirect change in control and management of the respective companies by Bain Capital.

This marks the final set of approvals for the Manappuram-Bain Capital deal amounting to Rs 4,385 crore.

"Having now received all requisite statutory approvals, the company and Bain Capital will aim to complete the capital infusion in the Company by March 31, 2026," Manappuram said.


Also Read: Liquidity faces a bit of squeeze as Rs 2 lakh crore flows to tax kitty

The final approval granted by the regulator is however subject to a couple of conditions. One of these is that Bain Capital will have to submit an action plan to reduce its majority stake in Tyger Capital.

"The aforesaid final approval granted by the RBI is subject to conditions specified by the RBI in its approval for the company as disclosed on dated February 14, 2026," Manappuram said Wednesday in a stock exchange notice.

Earlier on February 14, while granting its approval to the deal, RBI said that the company is required to advise the investors to furnish an action plan to ensure that there will not be more than one non-banking financial company of the same category / housing finance company within their group with majority shareholding and control.

Upon completion of the investment and based on the open offer subscription, Bain Capital will hold between 18% and 41.66% shareholding in the company on a fully diluted basis.

Also Read: RBI seeks banks’ views on AI-based facial recognition tools at ATMs, branches to curb fraud

After the completion of the transaction and the open offer, Bain Capital will be classified as a promoter of the Manappuram and will jointly control the company along with the existing promoters.

The respective boards of Manappuram and its subsidiaries will be reconstituted and will include Bain Capital’s nominee directors, in line with the definitive agreements.

The global private investment firm last month received RBI's approval for acquiring up to 41.66% in Manappuram and a joint control in the company. The acquisition is being done through Bain's affiliates BC Asia Investments XXV Ltd and BC Asia Investments XIV Ltd.

Manappuram chairman VP Nandakumar along with his family members held 35.25% in the company as promoters at the end of december last year and they would retain 28.9% after the completion of the deal.